In The News

One of the greatest things I have seen in the last ten years is the example set by the world’s richest families when it comes to philanthropy. Warren Buffet, Bill Gates and even the young and enormously rich Mark Zuckerberg have all pledged to give away most of their fortunes, amounting to tens of billions of dollars, to charities. Many others have followed their lead.

One of the great goals of economics, ever since the discipline was founded, has been to abolish the business cycle. Economic booms followed by recessions have always been a regular, if unpleasant, feature of life. In the past 90 years there have been at least two global great recessions, and in North America at least 13 other significant recessions. (A recession is a period in which the economy contracts significantly for at least two quarters in a row). On average, there has been a recession, be it great or small, once every six or seven years.

When someone is asked to give examples of “great businesses”, the names that typically come to mind are well-known consumer brands such as Apple, McDonalds, or Amazon. Clearly there is something about these businesses that make people think they are great. Ernest Wong discusses the characteristics that we look for in great companies using Moody's as an example.